What does the Saudi labor law say in 2026, after the latest amendments?
The Saudi labor law is the Labor Law issued by Royal Decree No. M/51 of 1426H, and the version applied throughout 2026 is the one amended by Royal Decree No. M/44 (8 Safar 1446H), which came into force on 19 February 2025. That amendment package revised 38 articles, repealed 7 and added 2 new ones.
So the “new labor law in Saudi Arabia” is not a separate law issued in 2026. What changed for employees and employers in the private sector is concrete: probation of up to 180 days, a 30-day notice for employees and 60 days for employers, clear resignation rules, 12 weeks of paid maternity leave and new bereavement and paternity rules. When those rules turn into labor disputes, the claim starts with amicable settlement at HRSD before the Labor Court.
You can book a consultation on WhatsApp with the team at Al-Safwa Law Firm for Advocacy and Legal Consultations to review your documents and explain your legal options clearly.
Table of Contents
What is the Saudi labor law and who does it cover?
The Saudi Labor Law (also written Saudi labour law) is the main statute that governs private-sector employment in the Kingdom. It sets the minimum rights of workers, Saudi and non-Saudi alike, covering contracts, wages, working hours, leave, termination and end-of-service awards. Any contract term that gives the worker less than the law is void, and the Ministry of Human Resources and Social Development (HRSD) enforces it.
A few general rules matter in practice, especially for expats and foreign companies:
- Arabic prevails. Under Article 9, contracts and records must be in Arabic. If a bilingual contract is used, the Arabic text is the authoritative one.
- Hijri dates by default. Article 10 says periods are counted by the Hijri calendar unless the contract or work regulations say otherwise.
- No waiver during the contract. Article 8 voids any waiver or settlement of the worker’s rights during the contract unless it is more beneficial to the worker.
- Who is excluded. Article 7 excludes, among others, domestic workers, agricultural workers and private herders, sports club players and coaches, and non-Saudis who come for a specific task of up to two months. These groups are covered by their own regulations.
The full current text is published by HRSD in its Labor Law knowledge centre (English) and by the Bureau of Experts at the Council of Ministers on laws.boe.gov.sa (Arabic).
Saudi labor law amendments in force since February 2025
HRSD announced that the amendments took effect on 20 Sha’ban 1446H (19 February 2025), together with updated Implementing Regulations. The table below summarises the changes that affect most employment relationships (checked against the official HRSD text as of November 2026).
| Topic | Rule after the amendments | Article |
|---|---|---|
| Probation | Must be written in the contract; total may not exceed 180 days | 53–54 |
| Notice (indefinite contract, monthly pay) | 30 days if the employee terminates; 60 days if the employer terminates | 75 |
| Resignation | Added as a ground for ending the contract; deemed accepted after 30 days without a reply | 74, 79 bis |
| Non-Saudi contracts | Must be written and fixed-term; if no term is stated, it is one year, renewed for a similar period | 37 |
| Overtime | Hourly wage + 50% of basic wage, or paid compensatory leave if the worker agrees | 107 |
| Bereavement and paternity | 3 days for the death of a sibling; 3 days paternity leave within 7 days of the birth | 113 |
| Maternity | 12 weeks on full pay, 6 of them mandatory after delivery | 151 |
A separate step followed in March 2026, when the Minister amended the schedule of violations and penalties and grouped violations into categories by activity.
Employment contracts and the Qiwa e-contract
Article 51 requires the employment contract to be written in two copies and documented as the regulations specify. A contract is still valid if it is not written, and in that case the worker alone may prove it by any means. Article 52 requires the contract to follow the Ministry’s model and to state the wage with allowances, the type and place of work, the start date and, for fixed-term contracts, the duration.
In practice, private-sector contracts are documented on Qiwa. Through HRSD’s Contract Management service, the establishment creates the contract and the employee can approve it, reject it or request an amendment from their Qiwa account. Once both sides agree, the contract is treated as certified by HRSD.
Before you accept a Qiwa contract, check:
- the basic salary and each allowance, shown separately;
- the real job title and the contract type and duration;
- the probation clause and its length;
- working hours and any notice or termination clause.
If a term does not match what was agreed, raise it before approval. An employment contract lawyer can review the draft against the law before either side signs.
Probation period (Article 53)
Under amended Article 53, probation applies only if the contract states it expressly and fixes its length, and the total may not exceed 180 days in any case. Either party may end the contract during probation. Article 54 adds that a worker may not be placed on probation twice with the same employer, unless both agree in writing and the new probation is for a different job, or at least six months have passed since the earlier relationship ended.
If the contract ends during probation, neither party is owed compensation and no end-of-service award is due for that period. Disputes usually arise when probation is repeated without meeting these conditions, or when the clause is vague.
Working hours, rest and overtime
Article 98 caps actual working hours at 8 per day under the daily standard or 48 per week under the weekly standard. During Ramadan, hours for Muslim workers drop to 6 per day or 36 per week. Article 101 bars more than 5 consecutive hours without a break of at least 30 minutes for rest, prayer and meals, and the worker may not stay at the workplace more than 12 hours a day.
Overtime under Article 107 is paid at the hourly wage plus 50% of the basic wage. With the worker’s consent, the employer may give paid compensatory leave instead. Hours above the weekly standard, and all hours worked on official holidays, count as overtime. HRSD has set an annual overtime ceiling of 720 hours, which can only be exceeded with the worker’s consent.
If you claim overtime, attendance records, written assignments, emails and approved rosters are what usually prove it.
Annual leave and official holidays (Articles 109–112)
Article 109 gives at least 21 days of paid annual leave a year, rising to at least 30 days after five consecutive years with the same employer, paid in advance. The worker may not waive the leave or take cash instead of it while still in service. Under Article 110, the worker may defer leave to the following year with the employer’s approval, and the employer may postpone it for up to 90 days, or longer only with the worker’s written consent.
Article 111 entitles a departing worker to pay for unused leave days. Article 112 gives fully paid leave on the official holidays set by the Implementing Regulations, which are Eid al-Fitr, Eid al-Adha, National Day and Founding Day. HRSD announces the private-sector dates each year.
Other paid leave: marriage, bereavement and paternity (Article 113)
Amended Article 113 provides fully paid leave of:
- 5 days on the worker’s marriage;
- 5 days on the death of a spouse, an ascendant or a descendant;
- 3 days on the death of a brother or sister (new);
- 3 days on the birth of a child, to be taken within 7 days of the birth.
The employer may ask for supporting documents. Other leave types in the law include Hajj leave of 10 to 15 days once during service after two years (Article 114) and exam leave (Article 115).
Sick leave (Article 117)
A worker who proves illness is entitled under Article 117 to sick leave on full pay for the first 30 days, three-quarters pay for the next 60 days and no pay for the following 30 days, within one year counted from the first sick leave, whether continuous or intermittent. Article 82 bars termination for illness before these periods are used up, and the worker may ask to attach annual leave to sick leave.
Women’s leave and protection (Article 151)
Amended Article 151 gives a working woman 12 weeks of maternity leave on full pay. The 6 weeks after delivery are mandatory, and she may place the other 6 weeks as she chooses, starting no earlier than 4 weeks before the expected date. She may extend the leave by one month without pay. If the child is born sick or with special needs requiring constant care, she gets an extra month on full pay, extendable by a month without pay.
Article 155 bars dismissal or a dismissal notice during pregnancy or maternity leave, including related illness of up to 180 days a year. Under Article 160, a Muslim widow is entitled to fully paid iddah leave of at least four months and ten days, and a non-Muslim widow to 15 days.
Wage protection and Mudad
Article 90 requires wages to be paid into workers’ accounts at accredited banks in the Kingdom. Under the Wage Protection programme, establishments upload a monthly wage file through the Mudad platform, and HRSD’s wage protection service updates the compliance rate immediately and lets the employer justify any flagged irregularity.
For the worker, this creates a record that helps prove late payment, short payment or a salary that does not match the contract. For the employer, it is proof of payment and a compliance record. Article 94 also allows the Labor Court to fine an employer up to double the amount unlawfully deducted or delayed.
Flexible work, part-time work and remote work
The law defines part-time work in Article 2 as working less than half of the establishment’s normal daily hours. Part-time workers are covered for occupational safety and health, work injuries and matters the Minister decides (Article 5). HRSD also runs a flexible, hourly work arrangement, where the key issues are how pay and rights are calculated for the hours actually worked.
Remote work does not remove the worker from the Labor Law. What matters is documenting the contract type, job title, working hours and agreed tasks, because many remote-work disputes start from how the relationship was described, not only from the money claimed.
Resignation under the amended law (Article 79 bis)
The new Article 79 bis sets clear resignation rules:
- The resignation is deemed accepted if the employer does not reply within 30 days of submission.
- The employer may postpone acceptance for up to 60 days if work requires it, with written reasons given to the employee within the first 30 days.
- The employee may withdraw the resignation within 7 days of submitting it, unless the employer has already accepted it.
- A resignation may not carry a deferred future date.
- The contract stays in force during the resignation period, and the employee keeps all rights under the law.
Termination, notice and compensation (Articles 74–81)
Article 74 lists how a contract ends: written mutual agreement, expiry of a fixed term, the will of one party in an indefinite contract (under Article 75), resignation, retirement age under the Social Insurance Law, force majeure, permanent closure, end of the activity, and a final bankruptcy ruling.
For indefinite contracts with monthly pay, Article 75 requires written notice of at least 30 days from the employee or 60 days from the employer; for non-monthly pay it is 30 days either way. A party that skips the notice pays the wage for the notice period (Article 76). During an employer’s notice, the worker may take one paid day, or eight hours, a week to look for a job (Article 78).
| Situation | What the law provides |
|---|---|
| Termination for an illegitimate reason (Article 77) | Unless the contract sets compensation: 15 days’ wage per year of service (indefinite contract) or wages for the remaining term (fixed-term), and never less than two months’ wages |
| Dismissal without award, notice or compensation (Article 80) | Only in listed cases, such as assault, serious breach after written warning, proven dishonesty, forgery to get the job, or absence of more than 30 days a year or 15 consecutive days after written warning, and only after the worker can state an objection |
| Worker leaves without notice and keeps rights (Article 81) | Employer breaches essential obligations, deceived the worker at hiring, assigns fundamentally different work without consent, assault or humiliating treatment, a known safety danger left unaddressed, or conduct that forces the worker to look like the one who quit |
Each of these articles has its own detailed rules: Article 77, Article 80 and Article 81.
End-of-service award (Articles 84–88)
Under Article 84, the employer pays half a month’s wage for each of the first five years and one month’s wage for each later year, based on the last wage, with pro-rata pay for part years. If the worker resigns, Article 85 gives one-third of the award after 2 to 5 years of continuous service, two-thirds after more than 5 and under 10 years, and the full award after 10 years or more.
Article 87 grants the full award when the worker leaves due to force majeure, and to a female worker who ends the contract within six months of her marriage contract or three months of giving birth. Article 88 requires final settlement within one week of the end of the relationship, or two weeks if the worker ended it.
Rules that matter for non-Saudi workers
- Fixed-term contract: Article 37 requires a written fixed-term contract; if none is stated, the term is one year from the actual start date, renewed for a similar period.
- Employer costs (Article 40): the employer bears recruitment costs, residence and work permit fees and renewals and their late penalties, profession-change fees, exit and re-entry fees, and the return ticket at the end of the relationship. The worker pays the return trip only if unfit for work or leaving without a legitimate reason.
- Profession on the permit: Article 38 bars working in a profession other than the one on the work permit until it is formally changed.
How to claim your rights: amicable settlement, then the Labor Court
A labor claim starts with HRSD’s Friendly Settlement for Labor Disputes service. It is free and filed electronically, and if no settlement is reached the case is referred to the Labor Court within 21 working days of the first filing. A labor office lawyer can handle this stage for either party.
- Log in to HRSD’s labor e-services portal and choose the amicable settlement (file a claim) service.
- Enter the claimant, the defendant, the work details and the subject of the claim.
- Attach the contract, payslips or bank statements, the resignation or dismissal notice, key correspondence and any proof of attendance or assignment.
- Confirm the declaration and submit, then attend the settlement sessions after the one-week direct negotiation window.
- If the dispute is not settled, it moves to the Labor Court, where the case continues through Najiz and a well-drafted statement of claim matters.
Common reasons a claim is not accepted at this stage, based on the service conditions HRSD publishes:
- it is filed more than 12 months after the employment ended (see also Article 234);
- it is lodged with a settlement office in the wrong city (it should follow the city of the last working day);
- the worker is a domestic worker, who falls under a separate regulation;
- a representative’s power of attorney does not include the powers to attend settlement and to settle or waive.
Penalties for violating the Saudi labor law
Article 229 allows one or more penalties for any violation: a fine of up to SAR 100,000, closure of the establishment for up to 30 days, or permanent closure. Fines can be doubled for repeat violations and multiplied by the number of workers affected (Article 229, as published on HRSD’s Penalties page). The exact amount for each violation follows the Minister’s schedule of violations, last amended in March 2026.
Frequently Asked Questions about the Saudi Labor Law
The Saudi labor law in 2026 is the 2005 Labor Law as amended in February 2025, and most disputes now turn on a few points: the probation clause, the notice period, how a resignation was handled, and what the Qiwa contract and Mudad wage records show. Checking these documents before acting is usually the most useful step for either side.
If you face a dismissal, a disputed resignation or unpaid wages or end-of-service benefits, the Al-Safwa team can review your contract and records and explain the options the law gives you.
To get a legal consultation from our team, contact us via the WhatsApp button at the bottom of the screen.
Sources:
- HRSD: Enforcement of the Labor Law amendments from 19 February 2025
- HRSD Labor Law (English text): Labor Relations, Articles 50–88, Working Conditions, Articles 89–118, Women Employment, Articles 149–160, Employment of Non-Saudis, Articles 32–41, Definitions and General Provisions
- HRSD: Amendment of the schedule of violations and penalties (March 2026)
- HRSD services: Friendly Settlement for Labor Disputes, Contract Management (Qiwa), Uploading the Wage Protection file (Mudad)
- Bureau of Experts at the Council of Ministers: Labor Law, Royal Decree No. M/51 (Arabic official text)
A legal advisor holding a Bachelor’s degree in Law from the prestigious Cairo University. He possesses extensive experience spanning over 25 years in criminal, civil, and family law, during which he has achieved notable accomplishments that have solidified his reputation as a valuable asset to any legal team
